Here’s what happens when one party controls all three chambers of the state legislature: most of us can expect a rebate check in the next few months! Plus, struggling families with children are likely to get additional relief under a $3B tax cut bill that’s close to approval.
Here’s Five Fast Facts on Possible Minnesota Tax Cuts:
- ✂️ Snip Snip - Let’s get the important thing out of the way: there’s a one-time rebate check that acts as an advance income tax credit of $520 for married joint filers and $260 for single, married separate, and head-of-household filers. It’s not much, but at least there’s something.
- 🪓 Bonus - If your household has a dependent, you’ll get an additional $260 for each dependent up to three. Those payments phase out at $75,000 (for single/married) and $150,000 (married joint/head of household/qualifying widow).
- 👶 Think of the Children - The bill also includes a child tax credit of $1,750 for households that make $3,500 a year or less. It reduces on a gradual basis until it gets to households that make $96,250. The bill also expands the K-12 Education Credit to $1,500 per child.
- 💰Local Help - There’s $300M for public safety assistance for communities and $160M in state aid for cities and counties added in, too.
- 🧾 Socially Secured - Finally, there’s a full Social Security state income exemption for those earning less than $100,000 (married/joint) or $78,000 (single/head of household) that phases out at $118,000 for single and $140,000 for joint.
🔥Bottom line: Something is finally happening with the surplus and it’s going to help people who need it the most. The fact that it phases out at a certain income level demonstrates how the legislature feels about taxing the wealthy.
Will you get a rebate?
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